the DAO would fight the SEC without a lawyer

CryptoFed said it is not using an attorney in its legal battle with the SEC. This is a response to allegations by the SEC that the registration of the Ducat and Locke tokens were flawed. The first official DAO in the United States intends to defend itself against the threat hanging over its recording.

As a reminder, the United States SEC (Securities and Exchange Commission) had identified anomalies in the Form S-1 registration statement of September 17, 2021. A year later, the SEC initiated administrative proceedings against the DAO. This, in order to determine the issuance of a stop order revoking the registration of American CryptoFed and prohibiting sales of Ducat and Locke tokens.

According to regulators, the registration statement filed by the DAO lacks vital information. They mention in particular the audited financial statements and details of its activities and management. It would also contain misleading statements and omissions. According to the Cointelegraph report, the DAO said it will appear without an attorney to defend against the allegations.

CryptoFed vs SEC: the DAO would represent itself without a lawyer
CryptoFed vs SEC: the DAO would represent itself without a lawyer

Following the SEC case against the first official DAO in the United States

The American CryptoFed has just filed the notice of appearance in accordance with SEC rules. She also indicated her intention to file a motion to extend the deadline for her response to the SEC order. This will give him 20 days to prepare his case against the SEC’s stop-registration decision.

The Wyoming-based company seems determined and reassured in this fight. As reported by Cointelegraph, the Ducat is a stablecoin that resists inflation and deflation. It is thus useful for daily transactions or as a store of value. Locke is the governance token of the DAO. This token thus aims to facilitate the administration of the ecosystem and to stabilize the Ducat. The CryptoFed white paper states that these tokens are intended to be used as utility tokens. The company proceeded to register these tokens as securities to “ensure compliance with securities laws and related regulations.”

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